State of Nevada Commission on Mineral Resources Division of Minerals
Oil and Gas Statewide Drilling Bond

Businesses are required to file a bond with the State of Nevada Commission on Mineral Resources Division of Minerals
(the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety
bond company the cost of ensuring the public is compensated for damages resulting from a licensed
business breaking licensing laws.

Oil and Gas Statewide Drilling Bond

How much does the State of Nevada Commission on Mineral Resources Division of Minerals Oil and Gas Statewide Drilling bond cost?

Oil and Gas Statewide Drilling bonds typically cost between 0.5% and 15% of the bond amount depending on the personal credit, license history, and experience of the business owners and the surety carrier issuing the bond.

Is a Credit Check Required for State of Nevada Commission on Mineral Resources Division of Minerals Oil and Gas Statewide Drilling Bonds?

Credit checks are typically required for the State of Nevada Commission on Mineral Resources Division of Minerals Oil and Gas Statewide Drilling Bond.

Why is the State of Nevada Commission on Mineral Resources Division of Minerals Oil and Gas Statewide Drilling bond required?

Businesses are required to purchase and file a bond with the State of Nevada Commission on Mineral Resources Division of Minerals to activate their license.
The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for
damages resulting from the failure of a licensed business complying with the provisions of licensing laws.

How does the State of Nevada Commission on Mineral Resources Division of Minerals Oil and Gas Statewide Drilling bond work?

State of Nevada Commission on Mineral Resources Division of Minerals Oil and Gas Statewide Drilling bonds must be issued by an insurance carrier admitted by the NV Department of Insurance.
The insurance company issuing any surety bond, such as the State of Nevada Commission on Mineral Resources Division of Minerals Oil and Gas Statewide Drilling bond, will also be referred to as the “surety company”
or the “bond company”. The business is referred to as the Principal, the surety bond company as the Obligor and the State of Nevada Commission on Mineral Resources Division of Minerals as the Obligee.

The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business
will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form (“penal sum”).
The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners
are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.